Correlation Between Lotus Health and Shandong Homey
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By analyzing existing cross correlation between Lotus Health Group and Shandong Homey Aquatic, you can compare the effects of market volatilities on Lotus Health and Shandong Homey and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lotus Health with a short position of Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Health and Shandong Homey.
Diversification Opportunities for Lotus Health and Shandong Homey
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lotus and Shandong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Health Group and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic and Lotus Health is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lotus Health Group are associated (or correlated) with Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Lotus Health i.e., Lotus Health and Shandong Homey go up and down completely randomly.
Pair Corralation between Lotus Health and Shandong Homey
Assuming the 90 days trading horizon Lotus Health Group is expected to generate 1.58 times more return on investment than Shandong Homey. However, Lotus Health is 1.58 times more volatile than Shandong Homey Aquatic. It trades about -0.2 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.45 per unit of risk. If you would invest 585.00 in Lotus Health Group on October 13, 2024 and sell it today you would lose (136.00) from holding Lotus Health Group or give up 23.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotus Health Group vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Lotus Health Group |
| Shandong Homey Aquatic |
Lotus Health and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Health and Shandong Homey
The main advantage of trading using opposite Lotus Health and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Health position performs unexpectedly, Shandong Homey can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Lotus Health vs. Industrial and Commercial | Lotus Health vs. Agricultural Bank of | Lotus Health vs. China Construction Bank | Lotus Health vs. Bank of China |
| Shandong Homey vs. Impulse Qingdao Health | Shandong Homey vs. Longmaster Information Tech | Shandong Homey vs. Lotus Health Group | Shandong Homey vs. Healthcare Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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